Himachal Pradesh State Forest
Development Corporation Limited an undertaking of the HP Govt. came into existence on 25th
of March
1974. This corporation deals with the Marketing of mainly Timber Fuel
wood, pulpwood, bamboo, khair, rosin, turpentine oil, subsidary
products
( viz. phenyl, varnish, black japan ). read more

(Authoritative
English text of this department Notification No.
FFE-B-A(4)3/2005 dated 31.3.2008 as required under
clause (3) of Article 348 of the constitution of
India).

Government of
Himachal Pradesh

Department of
Forests

No.
FFE-B-A(4)3/2005_ Dated Shimla-2, the 31st
March, 2008

NOTIFICATION

WHEREAS, the State
Government constituted Advisory Committeesvide Notification No. FFE-B-A(4)3/2005 dated 13.11.2007, to
advise the State Government in the matter of
fixation of fair and reasonable price of the forest
produce for the financial year 2008-09, as required
under Section-6 of the Himachal Pradesh Forest
Produce (Regulation of Trade) Act, 1982, (Act No. 5 of 1982).

AND
WHEREAS, the Advisory Committees constituted for the
Forest Divisions have tendered their advice to the
Government as required under section 6 of the Act.

NOW
THEREFORE, in exercise of the powers conferred by
Section 7 of the Act ibid, the Governor, Himachal
Pradesh, is pleased to fix price at which HP State
Forest Corporation shall purchase the forest produce
from the owners, such forest produce which has been
mentioned in the schedule appended to the Act ibid,
for each of the following Forest Divisions of the
State of the Himachal Pradesh for the financial year
2008-09 as
under:-

Price of
standing trees per M3

Sl No

Forest Division of HP Forest Department

Deodar Rs. M3

Kail Rs.M3

Fir Spruce Rs.M3

Chil Rs.M3

Sal Rs. M3

Sain

Oak & other Broad leave species

1

Chamba

3851

2244

597

714

0

0

0

2

Bharmour

3089

2394

640

891

0

0

0

3

Churah

3851

2244

597

714

0

0

102

4

Dalhousie

3982

2656

706

773

0

896

102

5

Palampur

3392

2669

710

673

0

0

102

6

D/sala

3392

2669

710

627

0

896

102

7

Nurpur

0

0

0

616

730

896

102

8

Una

0

0

0

681

730

896

102

9

Seraj

3926

2574

938

891

0

0

0

10

Parvati

3926

2574

938

891

0

0

0

11

Kullu

3926

2574

938

891

0

0

0

12

J/Nagar

3912

3073

821

598

0

896

102

13

Mandi

3912

3073

821

598

0

0

102

14

Nachan

4994

3639

966

598

0

0

0

15

Karsog

3880

3047

817

598

0

0

102

16

Suket

4100

3222

861

598

0

0

102

17

Hamirpur

0

0

0

753

0

896

102

18

Dehra

0

0

0

627

0

896

102

19

Bilaspur

0

0

0

598

0

896

102

20

Chopal

4914

2840

756

584

0

0

102

21

Nahan

0

0

0

722

730

896

102

22

Rajgarh

4813

2795

743

914

730

0

102

23

Paonta

0

0

0

722

730

896

102

24

Renuka

4813

2795

743

914

730

896

102

25

Rampur

4110

2206

585

753

0

0

102

26

Kinnaur

4110

2206

585

0

0

0

0

27

Kotgarh

4110

2206

585

753

0

0

102

28

Anni

4110

2206

585

753

0

0

102

29

Rohroo

4767

2653

706

644

0

0

0

30

Theog

4569

2615

696

785

0

0

0

31

Shimla

4569

2615

696

785

0

0

102

32

Solan

4569

2615

696

914

0

0

102

33

Kunihar

0

0

0

697

730

896

102

34

Nalagarh

0

0

0

697

730

896

102

Note:

I)The volume of “stunted/suppressed” trees of
different species shall be taken as 5/8 (62.5%) for
the purpose of payment.

II)No unfit and Vth class tree shall be marked
and taken over by the HP State Forest Corporation.
If marked or taken over, no payment of the same
shall be made to the seller.

1.1 The above price shall be further subject to the
following conditions, namely:-

(a) Price payable for the volume of the tree in respect of IVth
class trees (dbh below 30 cms.) shall be 50% of the
price fixed above.

(b) In the case of dry and fallen tree(s), the price shall be 60% of
the price fixed above. Further in case of dry and
fallen tree(s) in respect of IVth class trees (dbh
below 30 cms.) the price shall be 60% of the price
specified in (a) above.

(c) In case of the tree(s) which are found rotten after felling,
the price shall be 30% of the price fixed in above
table and sub para (a) and (b) in case the rot is
found in the centre. Similarly in case the rot is
found from outside and is more than 25% of area at
cross section of stump, the price shall be 30% as in
the case of centre rot. To ascertain it, a joint
team comprising of Assistant Manager concerned of
HPSFC and Range Officer concerned of the Forest
Division will inspect the trees in which the
seller/owner shall also be associated. Further in
the case of dry and fallen tree(s) in respect of IV
class tree(s) (dbh below 30 cms) which are rotten,
the price shall be 60% of the price specified in (b)
above.

1.2 The payment of price shall be made in
the following manner:

(a) 50% of price shall be paid after the forest produce,
reaches at Road Side.

(b) Balance price shall be payable
immediately after final sale of the forest
produce.

1.SALE LINKED PRICE

2.1 The Seller /Owners shall have an option to opt for price
of forest produce linked with its actual sale
realization. The process and method for determining
the price of forest produce linked with sale,
hereinafter known as "Sale Linked Price" shall be
calculated by deducting actual direct expenses with
interest and handling charges from the actual sale
realization of the produce in the market, as
under:-

A) Final sale realization (including of
forfeiture of securities and earnest money,
Insurance claim, if any) of the forest produce.

C) Interest on investment i.e. on item
No. (B) ibid. at the borrowing rate of interest,
prevalent on 1st April of each year,
plus (+)1% extra.

D) Handling Charges @ 18% on sale
realization i.e. on item No. (A)

E) Price of the produce
= A - (B+C+D)

F) Advances paid to the seller/ owners

G) Interest on the advances, if any,
taken by the seller/owner till its recovery at
the borrowing rate of interest, prevalent on 1s
April of each year, plus 1% extra.

H) Interest payable to the seller/ owner
at the borrowing rate of interest, prevalent on
1st April of the year in which final
sale made, if balance amount is delayed beyond
two months after the final sale.

I) Balance payable
= (E+H)-(F+G)

2.2 Advances to the seller/ owner of the forest produce under
the "Sale Linked Price" shall be made on request as
below, by taking into account the expected yield to
be obtained, likely expenditure and expected sale to
be applied as per parameters stated above on
tentative basis: -

(i)25% after handing over the possession of
forest produce and execution of the Sale Deed;

(ii)25% on extraction of entire forest produce
from forest and its carriage to Road Side; and

(iii) Balance after completion of sale and finalization of accounts,
to be paid within two months of having recovered all
dues including advances paid to the seller/owners.
However, if final sale realization is delayed in
that case till final sale realization, part payment
of the sold produce may be considered by the HPSFC
to the following extent:-

“If entire
extracted timber has reached at Sale Depot and out
of that 70% or more has been sold and sale proceeds
realized, the seller shall be given one opportunity
for getting advance payment to the extent of 80% of
the sale proceeds realized of his timber after
adjusting 2 instalmentsy and all deductions of the
amount spent on his total timber by the Corporation,
interest, handling charges etc. The sellers shall
not be entitled to this advance payment as a matter
of right and applications shall be considered on
merit to avoid hardship.

3. GENERAL CONDITIONS:-

3.1The owners/sellers shall have to exercise an
option either to take payment as fixed for standing
trees or payment based on "Sale Linked Price". The
option so exercised shall be incorporated in the
Agreement Deed to be executed between the seller and
purchaser. The option once exercised shall be final
and irrevocable.

3.2The price shall be applicable for the trees
taken over from 1.4.2008 to 31.3.2009, (financial
year 2008-09), both days inclusive, by the HP State
Forest Corporation from the sellers.

3.3 The custody and the ownership of the forest
produce shall pass on to the HP State
Forest Corporation on the date when the forest
produce is taken over and Agreement Deed executed.
In case any extension/deviation is involved, the
seller shall be responsible to obtain the same
from the competent authority.

3.4 The working period shall be two years in
respect of Deodar, Kail, Fir/Spruce and in
respect of other scheduled species it shall be one
year. Year shall mean complete one year
(365 days or 366 days, as the case may be) from the
date of issue of felling order.

3.5 In case conversion percentage of timber of
all kind excluding Pulp Wood, Fuel Wood and
Fire Wood is more than 65% in respect of Deodar
species and 55% in case of other scheduled species
the permission for export under the HP Forest
Produce (Transit Land Route), Rules, 1978 shall have
to be obtained from the concerned Divisional
Forest Officer, which shall be given within one
month.

By
order,

Additional Chief Secretary (Forests)
to the Government of Himachal Pradesh.